U.S. Bank has completed a live cross-border payment using USBDC, its proprietary U.S. dollar-backed stablecoin, marking a step toward using blockchain infrastructure for institutional money movement.

The transaction moved funds between U.S. Bank entities in North America and Europe through the Stellar blockchain. It remained connected to the bank’s existing finance, risk, compliance and operations systems.

Because the payment took place between U.S. Bank entities, the pilot demonstrated an internal cross-border workflow and the controls supporting it. The announcement does not describe a broader public rollout or general customer availability for USBDC.

According to a statement from U.S. Bank:

The pilot demonstrated the ability for U.S. Bank to transfer value value on-chain . . . and represents an important milestone in the continued development of U.S. Bank’s digital asset and money movement capabilities.

The pilot tested USBDC’s ability to mint, transfer, redeem, freeze and claw back the stablecoin. U.S. Bank said the transaction also validated its internally developed Digital Asset Platform for issuing, managing and moving tokenized assets across blockchain networks.

“This live pilot demonstrates our ability to accelerate global cash management and money movement capabilities,” said Gunjan Kedia, Chairman and CEO at U.S. Bank. “We are excited to create value for our clients and harness the power of a new technology within the banking system.”

The bank is exploring additional applications for USBDC, including liquidity management, collateral mobility and cross-border treasury operations. Those areas will provide a basis for evaluating how the stablecoin could support other institutional payment and treasury workflows.

The pilot placed a traditional bank-issued stablecoin in a live payments setting rather than limiting the technology to a digital-asset experiment. Banks are increasingly examining on-chain rails for moving dollars through the global financial system.

“This pilot is another step forward in our broader digital asset strategy,” said Jamie Walker, Head of Digital Assets and Money Movement at U.S. Bank. “Our focus remains on delivering solutions that solve real client challenges while maintaining the safety, security and reliability that clients expect from U.S. Bank.”

Source: BitcoinKE